IFRS 2

IFRS 2 is an international financial reporting standard issued in February 2004 ^[1] by the International Accounting Standards Board (IASB) to provide guidance on the accounting for share based payments.

Its purpose is to reflect the cost of awarding equity or equity based incentives to employees or other parties in exchange for goods or services. ^[2]

Disclosure Requirements (IFRS 2)

IFRS 2 requires an entity to disclose information that enables users to understand the nature and extent of share-based payment arrangements that existed during the period and how the fair value was determined. ^[3]

Paragraph	Category	Disclosure Requirement	Description / Examples
IFRS 2.44	Arrangements	Description of Plans	A description of each type of share-based payment arrangement, including general terms and conditions (e.g., vesting requirements, maximum term of options).
IFRS 2.45	Quantity and Pricing	Movement of Options	The number and weighted average exercise prices of share options for: outstanding (start), granted, forfeited, exercised, expired, and outstanding (end).
IFRS 2.45(d)		Average Share Price	For share options exercised during the period, the weighted average share price at the date of exercise.
IFRS 2.47	Valuation Inputs	Fair Value Determination	How the fair value of goods or services received (or equity instruments granted) was measured.
IFRS 2.47(a)		Option Pricing Model	If a pricing model was used (e.g., Black-Scholes), the inputs used: expected volatility, option life, expected dividends, and the risk-free interest rate.
IFRS 2.50	P&L Impact	Expense Recognition	The total expense recognized for the period arising from share-based payment transactions, including a separate breakdown for equity-settled vs. cash-settled.
IFRS 2.51	Financial Position	Liability Balances	For cash-settled share-based payments (e.g., SARs), the total carrying amount of the liability at the end of the period.

References

1. "IFRS 2 Share-based Payment". International Accounting Standards Board (IASB).
2. "IFRS 2, Share-based payment". ACCA.
3. IASB. IFRS 2, Paragraph 44-52.

External links

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